Introduction
The commentary below discusses relief available for interest paid by partners or employees where they take out a loan to buy plant or machinery for use in the business. This should be read in conjunction with E1.820, which includes details about general restrictions that apply to all qualifying loans and the mechanism by which relief is given (including the situation where interest paid on a loan to buy plant and machinery for use in a partnership can be treated as a trading loss).
Loan to buy plant or machinery for use in a partnership
Where a partnership uses plant or machinery for the purposes of its trade or property business and that plant or machinery belongs to one or more of the individual partners, not the partnership itself, the partner or partners to whom it belongs can obtain relief for interest paid on a loan applied towards its acquisition1.
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